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Problem - The cost accountant of ABC Company conducted an analysis of total costs in relation to the number of labor hours used and came up with a cost function for a relevant range of 5,000 labor hours to 40,000 labor hours as follows:
Total costs = P 400,000 + 20x
Where x: number of direct labor hours
Required - How much is the total cost for 40,000 direct labor hours?
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